The subject of the master's thesis is „Impact of consumer risk perception change on the used car market.“. The thesis presents particular theoretical knowledge from the areas of uncertainty and information asymmetry on the market which is required for further analysis in the thesis.
Implementation of the von Neumann-Morgenstern utility function is presented in more detail. Furthermore, adverse selection, which has been explained on the example of the used car market as well as on the example of the loan and deposit market, is also elaborated in more detail. Also, particular methods for solving situations arising as a result of information asymmetry are presented.
In addition to the presented example of impact of adverse selection on the used car market, impact of consumer risk perception change on the market is also analysed. It has been established that consumer risk perception change has an impact on the market. Such a change can lead to adverse situations on the market, which have negative consequences both for the consumer and the company. Furthermore, one of the possible solutions of such a problem by the company has been analysed.
The results obtained lead us to the conclusion that consumer risk perception plays a great role in the used car market. Consequently, consumer risk perception change has an impact on the companies' profit. Considering that the adverse selection problem, as well as the consumer risk perception problem, do not relate exclusively to the used car market, an analytical approach to this problem is fully justified.